AUD/USD Price Analysis: Greenback bulls attack seven-week-old support at 0.6830


  • The asset has tumbled below seven-week-old support at 0.6829 and has renewed a two-year low at 0.6812.
  • Vertically declining 10- and 20-period EMAs are hinting at a severe weakness in the counter.
  • The RSI (14) is attempting to shift into the bearish range of 20.00-40.00.

The AUD/USD pair has witnessed a sigh of relief after displaying a sheer downside move. The greenback bulls have dragged the asset firmly to near 0.6813 in the early European session after violating Thursday’s low at 0.6854.

The prolonged weakness in the asset has compelled us to shift to a higher time frame. On the daily scale, the greenback bulls have attacked the seven-week-old critical support of 0.6829, recorded on May 12, and have recorded a fresh two-year low at 0.6812. Meanwhile, the potential supply area has shifted to near January 28 low at 0.6966.

The 10- and 20-period Exponential Moving Averages (EMAs) at 0.6915 and 0.6967 respectively are declining perpendicularly, which signals an intense sell-off ahead.

Meanwhile, the Relative Strength Index (RSI) (14) is on the verge of shifting into the bearish range of 20.00-40.00, which will fetch a downside impulsive wave. The momentum oscillator, RSI (14) is not displaying any signs of divergence and oversold.

A minor rebound to near June 14 low at 0.6850 will be a bargain sell for the market participants. An occurrence of the same will activate sellers and will drag the asset towards the round-level support and 15 June 2020 low at 0.6800 and 0.6776 respectively.

Alternatively, the aussie bulls could lift the asset price higher if the major overstep Wednesday’s high at 0.6965. This will drive the asset towards the psychological resistance at 0.7000, followed by June 13 high at 0.7035.

AUD/USD daily chart

AUD/USD

Overview
Today last price 0.6828
Today Daily Change -0.0075
Today Daily Change % -1.09
Today daily open 0.6903
 
Trends
Daily SMA20 0.7004
Daily SMA50 0.7051
Daily SMA100 0.7203
Daily SMA200 0.7226
 
Levels
Previous Daily High 0.692
Previous Daily Low 0.6852
Previous Weekly High 0.6997
Previous Weekly Low 0.6868
Previous Monthly High 0.7283
Previous Monthly Low 0.685
Daily Fibonacci 38.2% 0.6894
Daily Fibonacci 61.8% 0.6878
Daily Pivot Point S1 0.6864
Daily Pivot Point S2 0.6824
Daily Pivot Point S3 0.6796
Daily Pivot Point R1 0.6931
Daily Pivot Point R2 0.6959
Daily Pivot Point R3 0.6999

 

 

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD remains choppy below 1.0200 on dismal EU GDP, Fed minutes eyed

EUR/USD remains choppy below 1.0200 on dismal EU GDP, Fed minutes eyed

EUR/USD is extending choppy trading below 1.0200 amid a downgrade to the Eurozone Q2 GDP and risk-aversion. The US dollar pauses its renewed upside ahead of Fed minutes. The euro remains vulnerable to recession fears and the gas crisis. 

EUR/USD News

GBP/USD recaptures 1.2100 as USD rebound fizzles

GBP/USD recaptures 1.2100 as USD rebound fizzles

GBP/USD is trading above 1.2100 in the European session on Wednesday as investors assess the implications of surging UK inflation on the BOE's next policy move. The US dollar fails to hold the upside amid souring risk sentiment ahead of US data and Fed minutes. 

GBP/USD News

Gold struggles near one-week low, focus remains on FOMC minutes

Gold struggles near one-week low, focus remains on FOMC minutes

Gold turns lower for the third successive day amid the emergence of fresh USD buying. Hawkish Fed expectations, rising US bond yields continue to underpin the greenback. Recession fears could limit losses for the XAU/USD ahead of the key FOMC minutes.

Gold News

Solana price hints at a 50% upswing under these specific conditions

Solana price hints at a 50% upswing under these specific conditions

Solana price shows an interesting setup as it tries to overcome a stiff resistance level. The fifth attempt to overcome hurdles will likely be successful due to multiple bullish confluences. Solana price has been on a clear uptrend since producing the June 14 swing low at $25.76.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures